What does a 1.25 DSCR mean?
A 1.25 DSCR means the property's rent is 125% of its monthly housing payment, leaving a 25% cushion after principal, interest, taxes, insurance and HOA dues. At $2,000 a month of payment, a 1.25 ratio requires $2,500 of rent. On Silt's DSCR program 1.25 is the top pricing band: the floor to qualify is 1.00, an intermediate tier begins at 1.05, and files at 1.25 or higher get the program's best ratio-based pricing. Portfolio loans use a blended ratio across all properties, with a 1.15 minimum across the pool. A ratio below 1.00 means the rent does not cover the payment, which some programs allow at higher pricing and lower leverage. To move a property from 1.10 to 1.25, you can lower the loan amount, reduce the rate, cut insurance or tax costs, or document a higher market rent.
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Last reviewed 19 October 2026 · Terms are illustrative, not a commitment to lend; every loan is subject to underwriting.